The bill amends section 150 of the 1956 Insurance Code to enhance the enforcement mechanisms for violations of the act. It stipulates that individuals found in violation of the act, where no specific penalty is provided, must be given a hearing opportunity before the director. If a violation is confirmed, the director is required to document the findings and issue a cease and desist order. The bill introduces a civil fine structure, allowing fines of up to $1,000 for each violation, which can increase to $5,000 if the violator was aware of the violation. Additionally, it clarifies that fines can be imposed alongside other penalties or restitution for specific violations.

Furthermore, the bill allows the director to reopen and modify previous orders if circumstances change, and it establishes a higher penalty of $20,000 for knowingly violating a cease and desist order after a hearing. The collected fines are to be directed to the state treasurer for the general fund. The bill also empowers the director to seek court injunctions against violations, reinforcing the regulatory framework for insurance compliance in Michigan.

Statutes affected:
House Introduced Bill: 500.150